Copula-based Structural Limited Dependent Variable Models: Application to the Effect of Female Labor Force Participation on Fertility

نویسنده

  • Shigeki Kano
چکیده

We propose a general framework for analyzing structural limited dependent variable models where an endogenous regressor is also limited in range. A copula-based modeling of structural joint distributions permits us to implement a full information maximum likelihood estimation of parameters. We apply this modeling strategy to the March 1992 and 2002 CPS data for estimating the average partial effect of women’s labor force participation on the number of their children, a count outcome. Our empirical result shows that ignoring endogeneity yields a substantial bias on the negative labor supply effect on the distribution of fertility. JEL classification numbers: C34; C35; J13; J21.

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تاریخ انتشار 2009